On October 23, 2000, Jim Brauer, president of the
Rocky Mountain Conference, sent a letter to "pastors and
friends" of the conference. This letter, apparently not sent to
many people, included these two paragraphs:

"It is imperative that we join hands in prayer
this week as we approach North American year-end meetings [the annual
meeting, covering several days, of North American Division officers].
Issues, regarding the retirement plan and whether all conferences will
continue to support it, continue to escalate in tone and substance.
Efforts to find a solution have broken down, legal implications are
significant, but of most importance is [maintaining] the clear unity
of the church . .

"I do not wish to say anything specific
regarding current events for fear of further causing a split. But I do
want you to know the situation is very serious, even to a discussion
of creating a new denomination. So please pray this week and
especially next week during year-end session." Jim Brauer,
Rocky Mountain Conference, October 23, 2000.

That was, indeed, a remarkable statement. What is it
all about? Our readers will recall that we have written several tracts
on the pension fund crisis in the North American Division (NAD). These
studies include: General Conference Retirement Fund in Trouble [WM500],
Our Church Retirement Fund Crisis [WM668-669], and Changes in
the Church's Pension Funds [WM838].

BACKGROUND OF THE PROBLEM

For decades, the leaders have followed the example of
the U.S. federal government and used part of the retirement funds for
other needs. Just as Congress found it convenient to spend Social
Security funds for other things, the Adventist denomination has done the
same thing. In both cases, it was felt that, since the population was
growing, new additions paying into the pension fund would care for those
retiring.

However, in the mid-1980s, membership in the
denomination did not continue as it should and, in response to the
growing laxity in standards and adherence to the original teachings of
Adventism, tithes and offerings began falling off. The placated liberals
believed neither in standards nor tithing, and the conservatives were
rather consistently rebuked when they pled for a return to historic
principles. Both sides increasingly voted with their wallets.

The result was an increasing reduction in the number
of pastors who were hired. This produced a lopsided situation in which
more workers were retiring than were being added to the workforce.

The earlier "defined benefit" retirement
plan, which only had a pension fund equal to three times the funding for
a single year, was "frozen" as of December 21, 1999. In its
place, a "defined contributions plan" was started. Under it,
each employing church entity makes a smaller basic, monthly tax-deferred
contribution for each eligible employee, with an additional matching
amount for those employees who choose to make voluntary contributions of
their own through payroll deduction. No longer does the church manage
the funds; instead, the individual workers do.

But the old plan still had to be kept in place for
the 14,500 workers already retired and the many more who will retire
under that plan in the future. This meant that, beginning in 2000, the
conferences have to make contributions for both plans.

REGIONAL CONFERENCES OBJECTED

But eight of the nine regional conferences, which
have a majority of black members, did not like the new plan, because
their workers would henceforth have to pay more. So, prior to the
changeover date, they developed a separate plan. As part of it, they now
no longer contribute their 9% of tithe to support the old plan! This
means that the NAD is providing retirement payments to black workers,
without being reimbursed by eight former regional conferences which
employs them.

Those eight conferences maintain that, in the past,
they have contributed far more to the funding of the old plan than the
benefits received by retired workers in those conferences. This is
partly due to the fact that the amount of tithe received by those
conferences is more than the number of black workers throughout the
division.

Feeling that their workers were being unjustly
treated, the black conferences even threatened to pull out of the
pension plan entirely, and there has actually been talk of their
forming a separate organizational structure! This may not occur; for
such talk was primarily intended to prompt NAD leadership into effecting
radical changes in the pension program which would be more favorable to
the regional conferences. Crucial to the problem is whether workers
should pay an increased amount into the retirement fund. This, of
course, would reduce their monthly salaries. (One other predominantly
black regional conference has, so far, not joined the eight in their
"pension rebellion.")

That, in brief, is an overview of the pension
problem. This is what the officers attending the fall 2000 year-end
meeting were confronted with.

THE 2000 NAD YEAR-END MEETING

The North American Division executive committees
year-end meeting convened from Sunday, October 29 through Monday,
November 1.

Early in the meetings, the presidents of the eight
regional conferences announced the groups intention to totally pull
out of the NAD retirement program. This led to a special meeting,
chaired by a General Conference NAD president (Don Schneider); during
this time, everybody had a chance to air his opinions, feelings, and
concerns.

Since the changeover began (January 2000), the eight
regionals have withheld $7 million from the new plan. A Lake Region
officer said that, in 1999, it paid in $900,000 while its retirees drew
out less than $300,000. In the same period, Central States said it paid
in $300,000 while its retirees drew out only $60,000.

Actually, all conferences pay more than the actual
costs to fund their own retired employees. The excess helps pay benefits
for overseas and institutional employees, when they retire.

But, as already noted, the regionals also object to
the new plan of having current employees help pay for their own
retirement. Regional officials felt that their workers, who essentially
receive the same amount of pay as the non-regional conferences and
entities, could not afford to make those payments.

Ultimately, no action was voted on the retirement
problem, either in that special meeting or in the main session. So the
matter remains unsettled. It is still hanging, and there is the
possibility that the regional conferences may yet bolt from the
denomination. Although that is not likely to happen, they probably will
continue with their separate retirement program.

THE SALARY PROBLEM

Many wage-related challenges confront local
conferences and educational institutions in North America. A number of
our college and university faculty members are quitting in order to
obtain better paying jobs elsewhere, and conferences are having a
difficult time getting enough money to pay pastors salaries.

Some of our medical institutions, colleges and
universities, Adventist Risk Management (the General Conference
insurance department), and one of our publishing houses have abandoned
the official church pay scales and are now paying higher salaries.

Discussion over this ongoing problem continues, but
there seems to be no solution in sight. As with the retirement fund
problem, no definite decisions were made, at the 2000 year-end meeting,
which would solve the salary problem. The same problems had been
discussed at the previous year-end meeting, also without resolution. One
of the officers attending this years session said to those in
attendance: "The problem I see is that there seems to be no sunset
on when these discussions will end . . Is there any indication as to
when the discussions will end so a decision can be made and both can
move forward?"

THE IMPACT OF ALL THIS

Gradually, it seems, the denomination is falling
apart. As long as we adhered to our historic standards and teachings, we
were safe and united. But, since the 1950s, our denomination has
encountered one problem after another.

Whether it be financial, doctrinal, standards, or
whatever, the organization is gradually headed downhill. When we
departed from strict obedience to our Bible-Spirit of Prophecy
principles, we started to unravel.

The more we chased after Celebrationism, ecumenism,
worldly standards, and the new theology, the more the Lord left us to
our own ways. As it was in the days of the Judges, so it is today in our
denomination. Everyone is doing what is right in his own eyes instead
of what the Lord commands in the inspired Scriptures and we are
suffering for it. As Moses predicted in Deuteronomy 28, the other
nations are becoming the head and we are becoming the tail.

Regarding the retirement and salary problems, what
will happen is that even fewer pastors will eventually be employed by
the conferences, and each will shuttle back and forth between more
churches. Ministers will spend even more time managing committee
meetings instead of winning souls.

The publishing houses will charge even more for their
books. This is unfortunate; for we had hoped that they would lower their
prices on Great Controversy, etc., to match those of independent
ministries.

Our academies, colleges, and universities will charge
even higher rates of tuition.

Smaller amounts of money will be sent overseas for
mission work, and even more will be sunk into paying local bills at
home. vf